To enter the sale of stock in a privately owned business you will need Desktop TurboTax Premier of higher.
Follow these steps while adding the sale of a stock
- Add a sale
- No you did not get a 1099-B
- I'll enter one sale at a time
- Enter the sale of the small business stock
- There should not be any less common items
- No this was not sale of employee stock
- Check the box The gain (or Loss) from this sale is for special treatment because its from Qualified Small Business Stock
- Qualified Small Business Stock eligible for exclusion from Gain
- You will have to answer the next questions yourself
- Continue to the end of the section
Only certain types of companies fall under the category of a QSB. Firms in the technology, retail, wholesale, and manufacturing sectors are eligible as QSBs, while those in the hospitality industry, personal services, the financial sector, farming, and mining are not.
A qualified small business stock (QSBS) is any stock acquired from a QSB after Aug. 10, 1993. Under Section 1202, the capital gains from qualified small businesses are exempt from federal taxes.
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